SBA LOANS DELIVER THE GREEN YOU NEED TO GO GREEN

Finding ways to reduce our impact on the planet has been a priority for many individuals and companies for several years now. From turning off lights to reducing the use of plastic products to carrying a reusable water bottle, there are so many ways that small shifts in our everyday habits can have a big impact.

The SBA has been a longstanding proponent of energy efficiency and incentivizes companies to do their part with funding that makes it easier to “go green”. In support of federal sustainability goals, the SBA has a $16.5 million cap on total outstanding loans for Energy Efficient Projects. This means qualifying small businesses can create a bigger positive impact by financing multiple eco-focused projects that meet one of these three requirements:

• Reduce energy consumption
  Are you thinking about installing a more energy efficient system on your property? For businesses with existing buildings, these upgrades are eligible for SBA Energy Efficient Projects funding when said upgrades result in at least a 10% decrease in energy use, compared to historical consumption.
• Generate renewable energy
  Many small businesses are investing in property upgrades to create their own renewable energy sources. To qualify for SBA funding, these projects must generate at least 15% of the company’s total energy. Depending on your location, installing a solar, wind, geothermal, hydropower, or biomass system can offer significant savings on your company’s energy costs while reducing its carbon footprint.
• Utilize sustainable design
  More and more companies believe their buildings shouldn’t just look good; they should do good. Installing energy efficient equipment, using recycled or reclaimed building materials, and reducing the use of greenhouse gas-producing fossil fuels are some of the low impact building principles that may qualify for SBA Energy Efficient Projects funding.

Focusing on sustainability isn’t just good for the planet, it can have a positive impact on client and employee attraction and retention. A Fast Company study revealed that 40% of millennials have chosen a job because of a company’s sustainability stance and a Nielson survey found that 81% of respondents believe companies should play a role in improving the environment.

SBA loans can provide small businesses with the funding they need to make changes that will make a difference. It’s important to note that with the three requirements listed above, specific documentation and audits are required to ensure projects truly meet the standards of sustainability outlined by the SBA and other regulatory agencies. Bay Area Development has significant experience bringing these projects to fruition for the benefit of our clients. Contact our team with your questions and let us guide you through the process.